Sustainable MBA
Encyclopedia
The traditional MBA degree (Masters in Business Administration) requires coursework and other study of business from a primarily financial
standpoint, with some attention to management of people, to conventional economic theory, and to business ethics
. A sustainable MBA program includes these subjects, and also study of managing for environmental and social sustainability
. These programs are sometimes called "green MBAs".
in these programs is generally defined to include economic, environmental, and social sustainability, collectively known as the Triple Bottom Line
. For each of these domains, sustainability means that it will be possible to continue through the foreseeable future, at least, without major breakdowns, such as
The environmental
and social justice
movements are sources for many of the issues, arguments, and research on sustainability, but the idea has firm roots in classical economics
.
One of the themes of sustainable MBA education is the extent to which environmental and social sustainability can be achieved at a profit, a question by no means answered fully.
Sustainability or "green" MBA programs can vary significantly from one school to another, some may stress management, some may stress entrepreneurship, others simply add a few "green" classes to their existing MBA program. Many advise to look at a program's curriculum, history, vision, mission, and most of all, to go and attend a class before fully enrolling in a program, as transparency is espoused as core to a sustainable MBA.
The oldest sustainability MBA in the USA (founded in 2000) is the MBA in Sustainable Enterprise, also officially known as the GreenMBA at Dominican University of California
, the university itself being founded in 1890.
, a biennial ranking and program survey, published by the Aspen Institute
is based on the integration of social, environmental, and ethical stewardship into university curriculum and faculty research. The ranking also weights significantly the extent to which students are exposed to these topics throughout their studies. Participation in the survey requires US-based schools possess accreditation; international schools must also be accredited or be recognized as leading institutions. The 2009-2010 cycle consisted of 149 participating universities. 63% of these schools were based in the US, while the remaining 37% were located throughout 24 countries. Although survey information from all participating schools is made available online, the top participating schools were ranked in the Aspen's Global 100 list. The 2011-2012 survey and ranking again include data from 149 universities.
Although not a ranking of business programs, Net Impact
annually produces and publishes a graduate program guide titled Business as UNusual. The guide seeks to provide information about what graduate programs offer their students within the realm of corporate responsibility and sustainability. Data for the guide come from surveys completed by graduate student Net Impact chapter leaders and from chapter member surveys. The most recent report contains profiles of 95 business schools.
Many MBA programs which offer sustainability degrees or concentrations also appear in general business school rankings. US News & World Report, Business Week, Financial Times
, The Economist
, and the Wall Street Journal all publish rankings of selected MBA programs. While the methodologies of each differ, most weight ranks heavily by employment and salary statistics, standardized test scores, and surveys of corporate recruiters.
and the Chicago School
of economics often claim that business has no other duty than profits to shareholders, and that business therefore has a duty not to pursue environmental and social sustainability except where it increases profits. The extent to which such actions are profitable is much disputed. On the other hand, Friedman actually did not say that the duty to shareholders was absolute: corporations also had a duty to obey the law and compete fairly.
The debate must then turn to the question of what laws may properly be placed on corporate behavior to prevent fraud and other forms of malfeasance, and to ensure open and free competition, with what enforcement mechanisms. Also, whether corporate lobbying for subsidies and other legally-mandated advantages is fair, given that it is economically inefficient and indeed harmful. This question turns in part on the honesty and effectiveness of governments, where results are decidedly mixed. It also turns in part on the honesty and effectiveness of public pressure groups. Results there are also decidedly mixed.
Criticism of sustainable or "green MBAs" has also been heard from environmentalists and social activists. Some complain of corporate greenwashing, that is, of companies pretending to be sustainable or green by hiring graduates of these programs when the companies really are not. Some complain that the programs themselves are not sustainable enough, pointing to weaknesses in their curriculum and core proposition.
Finance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...
standpoint, with some attention to management of people, to conventional economic theory, and to business ethics
Business ethics
Business ethics is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations.Business...
. A sustainable MBA program includes these subjects, and also study of managing for environmental and social sustainability
Sustainability
Sustainability is the capacity to endure. For humans, sustainability is the long-term maintenance of well being, which has environmental, economic, and social dimensions, and encompasses the concept of union, an interdependent relationship and mutual responsible position with all living and non...
. These programs are sometimes called "green MBAs".
Conceptual foundation
SustainabilitySustainability
Sustainability is the capacity to endure. For humans, sustainability is the long-term maintenance of well being, which has environmental, economic, and social dimensions, and encompasses the concept of union, an interdependent relationship and mutual responsible position with all living and non...
in these programs is generally defined to include economic, environmental, and social sustainability, collectively known as the Triple Bottom Line
Triple bottom line
The triple bottom line captures an expanded spectrum of values and criteria for measuring organizational success: economic, ecological, and social...
. For each of these domains, sustainability means that it will be possible to continue through the foreseeable future, at least, without major breakdowns, such as
- Economic: running out of oil or other natural resources and having nothing to replace them on the scale required
- Environmental: loss of habitat, species, and whole ecologies; global warmingGlobal warmingGlobal warming refers to the rising average temperature of Earth's atmosphere and oceans and its projected continuation. In the last 100 years, Earth's average surface temperature increased by about with about two thirds of the increase occurring over just the last three decades...
- Social: overpopulationOverpopulationOverpopulation is a condition where an organism's numbers exceed the carrying capacity of its habitat. The term often refers to the relationship between the human population and its environment, the Earth...
beyond the carrying capacity of the earth; consequences of eliminating poverty within the current economic model
The environmental
Social environment
The social environment of an individual, also called social context or milieu, is the culture that s/he was educated or lives in, and the people and institutions with whom the person interacts....
and social justice
Social justice
Social justice generally refers to the idea of creating a society or institution that is based on the principles of equality and solidarity, that understands and values human rights, and that recognizes the dignity of every human being. The term and modern concept of "social justice" was coined by...
movements are sources for many of the issues, arguments, and research on sustainability, but the idea has firm roots in classical economics
Classical economics
Classical economics is widely regarded as the first modern school of economic thought. Its major developers include Adam Smith, Jean-Baptiste Say, David Ricardo, Thomas Malthus and John Stuart Mill....
.
- Externalities: economically significant effects of manufacturing and trade on those who are not part of the industry or market in question. The classic example of a negative externality is pollutionPollutionPollution is the introduction of contaminants into a natural environment that causes instability, disorder, harm or discomfort to the ecosystem i.e. physical systems or living organisms. Pollution can take the form of chemical substances or energy, such as noise, heat or light...
, while the largest current issue is global warmingGlobal warmingGlobal warming refers to the rising average temperature of Earth's atmosphere and oceans and its projected continuation. In the last 100 years, Earth's average surface temperature increased by about with about two thirds of the increase occurring over just the last three decades...
. The literature has identified many others, and many positive externalities, and has proposed many controversial measures to improve the balance.
- Natural resources: conventional accounting, including national accounts, treats extraction of finite natural resources as income, priced at the cost of extraction, and not as depletion of non-renewable natural capitalNatural capitalNatural capital is the extension of the economic notion of capital to goods and services relating to the natural environment. Natural capital is thus the stock of natural ecosystems that yields a flow of valuable ecosystem goods or services into the future...
. The resources of nature come to us for free. They are of infinite value from the point of view of preserving and sustaining life, but may not be subject to trading in a market, as in the case of air for breathing, for agriculture, or for burning fuels.
- The problem of valueValueValue or values may refer to:Concepts of worth:* Value theory – overview of approaches in various disciplines* Value ** Value * Value ** Theory of value ** Value investing...
: conventional economics can describe the process of setting prices in a marketplace through the interaction of supply and demandSupply and demandSupply and demand is an economic model of price determination in a market. It concludes that in a competitive market, the unit price for a particular good will vary until it settles at a point where the quantity demanded by consumers will equal the quantity supplied by producers , resulting in an...
, but cannot adequately explain value. (Though not for lack of trying. See Labor Theory of ValueLabor theory of valueThe labor theories of value are heterodox economic theories of value which argue that the value of a commodity is related to the labor needed to produce or obtain that commodity. The concept is most often associated with Marxian economics...
and Util for examples.) The most economists generally agree on is that an individual purchaser in a free market will only buy something worth more to that individual than the price, and that the seller values the goods less than the price, so that both sides come out ahead.
- Participation: The free marketFree marketA free market is a competitive market where prices are determined by supply and demand. However, the term is also commonly used for markets in which economic intervention and regulation by the state is limited to tax collection, and enforcement of private ownership and contracts...
is not free to those who have no access to it.
One of the themes of sustainable MBA education is the extent to which environmental and social sustainability can be achieved at a profit, a question by no means answered fully.
Sustainability or "green" MBA programs can vary significantly from one school to another, some may stress management, some may stress entrepreneurship, others simply add a few "green" classes to their existing MBA program. Many advise to look at a program's curriculum, history, vision, mission, and most of all, to go and attend a class before fully enrolling in a program, as transparency is espoused as core to a sustainable MBA.
The oldest sustainability MBA in the USA (founded in 2000) is the MBA in Sustainable Enterprise, also officially known as the GreenMBA at Dominican University of California
Dominican University of California
Dominican University of California is a four year, accredited, private, Catholic-heritage, and co-educational institution located in San Rafael, California. Founded in 1890 as Dominican College, Dominican is one of the oldest universities in California. The U.S. News and World Report ranks...
, the university itself being founded in 1890.
Sustainable MBA programs
The following are some of the current business programs explicitly offering MBA degrees in sustainability. Although many traditional MBA programs have incorporated sustainability-related topics into their curriculum, this list only includes schools offering a specific degree or concentration in sustainability areas:- Aarhus School of BusinessAarhus School of BusinessAarhus School of Business, Aarhus University is a business school in Aarhus, Denmark. It offers both undergraduate and graduate level studies in areas such as Business, Management, Economics, Business Language, and Law....
, Aarhus University offers a Sustainable MBA option. - Albers School of Business & Economic, Seattle UniversitySeattle UniversitySeattle University is a Jesuit Catholic university located in the First Hill neighborhood of Seattle, Washington, USA.SU is the largest independent university in the Northwest US, with over 7,500 students enrolled in undergraduate and graduate programs within eight schools, and is one of 28 member...
offers a Sustainability Specialization as part of their MBA program. - Anaheim UniversityAnaheim UniversityAnaheim University is a nationally accredited for profit university based in Anaheim, California. The University is accredited by the Distance Education and Training Council , an educational accreditation agency founded in 1926 located in Washington, D.C...
offers an online Green MBA degree option. - Antioch University New EnglandAntioch University New EnglandAntioch University New England is a private graduate school located in Keene, New Hampshire. It is part of the Antioch University system that includes campuses in Seattle, Washington; Los Angeles, California; Santa Barbara, California; and Yellow Springs, Ohio.- History :In 1964, Antioch College...
offers an MBA in Sustainability degree. - Bainbridge Graduate InstituteBainbridge Graduate InstituteThe Bainbridge Graduate Institute is based in Bainbridge Island, Washington and Seattle, Washington. BGI offers an MBA in Sustainable Business, an MBA in Sustainable Systems and a Certificate in Sustainable Business. BGI's unique and pioneering curriculum infuses social- and...
offers an MBA in Sustainable Business degree. - Bharathidasan UniversityBharathidasan UniversityBharathidasan University is a university in the city of Tiruchirapalli, Tamil Nadu state, India. It has affiliated colleges in districts of the state, including Nagapattinam, Perambalur, Pudukkottai, Thanjavur, Tiruvarur and Tiruchirapalli. It is a recognised university, supported by the...
offers MBA in Environmental Management degree options. - W.P. Carey School of Business, Arizona State UniversityArizona State UniversityArizona State University is a public research university located in the Phoenix Metropolitan Area of the State of Arizona...
offers an emphasis in Sustainability as part of their MBA program. - Colorado State UniversityColorado State UniversityColorado State University is a public research university located in Fort Collins, Colorado. The university is the state's land grant university, and the flagship university of the Colorado State University System.The enrollment is approximately 29,932 students, including resident and...
offers an MBA in Global & Sustainable Enterprise. - Dominican University of CaliforniaDominican University of CaliforniaDominican University of California is a four year, accredited, private, Catholic-heritage, and co-educational institution located in San Rafael, California. Founded in 1890 as Dominican College, Dominican is one of the oldest universities in California. The U.S. News and World Report ranks...
offers an MBA in Sustainable Enterprise. - Duquesne UniversityDuquesne UniversityDuquesne University of the Holy Spirit is a private Catholic university in Pittsburgh, Pennsylvania, United States. Founded by members of the Congregation of the Holy Spirit, Duquesne first opened its doors as the Pittsburgh Catholic College of the Holy Ghost in October 1878 with an enrollment of...
offers a MBA Sustainability degree. - Golden Gate UniversityGolden Gate UniversityGolden Gate University is a private, nonsectarian, coeducational university located in the South of Market district, immediately south of the Financial District of downtown San Francisco, California...
offers a concentration option in Managing for Sustainability as part of their MBA program. - Green Mountain CollegeGreen Mountain CollegeGreen Mountain College is a coeducational private environmental liberal arts college located in Poultney, Vermont, in the USA.Green Mountain is located in the Vermont countryside, at the foot of the Taconic Mountains between the Green Mountains and Adirondacks.The College has a core set of courses...
offers a Sustainable MBA option. - Haas School of BusinessHaas School of BusinessThe Walter A. Haas School of Business, also known as the Haas School of Business or simply Haas, is one of 14 schools and colleges at the University of California, Berkeley....
, UC Berkeley offers a concentration in Corporate Social Responsibility to its MBA students. - INCAE Business School offers a concentration in Sustainable Development to its MBA students.
- Johnson Graduate School of Management, Cornell UniversityCornell UniversityCornell University is an Ivy League university located in Ithaca, New York, United States. It is a private land-grant university, receiving annual funding from the State of New York for certain educational missions...
offers a concentration and an immersion in Sustainable Global Enterprise. - Marlboro College Graduate SchoolMarlboro College Graduate SchoolMarlboro College Graduate School was founded in 1997 by Marlboro College in Marlboro, Vermont. It is accredited with the New England Association of Schools and Colleges and located at 28 Vernon Street in Downtown Brattleboro, Vermont, approximately 12 miles from Marlboro College...
offers an MBA in Managing for Sustainability. - Marylhurst UniversityMarylhurst UniversityMarylhurst University is a private Catholic liberal arts university located in Marylhurst, Oregon, United States, nine miles south of Portland on the Willamette River. It is among the oldest collegiate degree-granting institutions in Oregon, awarding its first degree in 1897...
- offers an MBA in Sustainable Business. - Presidio Graduate School, Alliant International UniversityAlliant International UniversityAlliant International University is a private, non-profit higher education institution based in San Diego, California. It offers programs in six California cities and four locations outside the United States...
offers an MBA in Sustainable Management degree. - San Francisco State UniversitySan Francisco State UniversitySan Francisco State University is a public university located in San Francisco, California. As part of the 23-campus California State University system, the university offers over 100 areas of study from nine academic colleges...
's College of Business offers an emphasis in Sustainable Business as part of their MBA program. - Norwhich Business School, University of East AngliaUniversity of East AngliaThe University of East Anglia is a public research university based in Norwich, United Kingdom. It was established in 1963, and is a founder-member of the 1994 Group of research-intensive universities.-History:...
offers an MBA in Strategic Carbon Management. - University of ExeterUniversity of ExeterThe University of Exeter is a public university in South West England. It belongs to the 1994 Group, an association of 19 of the United Kingdom's smaller research-intensive universities....
- offers a One Planet MBA.
Sustainable MBA rankings
As interest in sustainability within MBA programs has increased, so has an interest on assessing their quality and different approaches. Beyond Grey PinstripesBeyond Grey Pinstripes
Beyond Grey Pinstripes is a ranking of full-time MBA programs which assesses and scores schools based on the integration of social, ethical, and environmental content into the curricula and faculty research...
, a biennial ranking and program survey, published by the Aspen Institute
Aspen Institute
The Aspen Institute is an international nonprofit organization founded in 1950 as the Aspen Institute of Humanistic Studies. The organization is dedicated to "fostering enlightened leadership, the appreciation of timeless ideas and values, and open-minded dialogue on contemporary issues." The...
is based on the integration of social, environmental, and ethical stewardship into university curriculum and faculty research. The ranking also weights significantly the extent to which students are exposed to these topics throughout their studies. Participation in the survey requires US-based schools possess accreditation; international schools must also be accredited or be recognized as leading institutions. The 2009-2010 cycle consisted of 149 participating universities. 63% of these schools were based in the US, while the remaining 37% were located throughout 24 countries. Although survey information from all participating schools is made available online, the top participating schools were ranked in the Aspen's Global 100 list. The 2011-2012 survey and ranking again include data from 149 universities.
Although not a ranking of business programs, Net Impact
Net Impact
Net Impact is a nonprofit membership organization for students and professionals interested in using business skills in support of various social and environmental causes. It serves both a professional organization and one of the largest student organizations among MBAs in the world...
annually produces and publishes a graduate program guide titled Business as UNusual. The guide seeks to provide information about what graduate programs offer their students within the realm of corporate responsibility and sustainability. Data for the guide come from surveys completed by graduate student Net Impact chapter leaders and from chapter member surveys. The most recent report contains profiles of 95 business schools.
Many MBA programs which offer sustainability degrees or concentrations also appear in general business school rankings. US News & World Report, Business Week, Financial Times
Financial Times
The Financial Times is an international business newspaper. It is a morning daily newspaper published in London and printed in 24 cities around the world. Its primary rival is the Wall Street Journal, published in New York City....
, The Economist
The Economist
The Economist is an English-language weekly news and international affairs publication owned by The Economist Newspaper Ltd. and edited in offices in the City of Westminster, London, England. Continuous publication began under founder James Wilson in September 1843...
, and the Wall Street Journal all publish rankings of selected MBA programs. While the methodologies of each differ, most weight ranks heavily by employment and salary statistics, standardized test scores, and surveys of corporate recruiters.
Criticism
Followers of Milton FriedmanMilton Friedman
Milton Friedman was an American economist, statistician, academic, and author who taught at the University of Chicago for more than three decades...
and the Chicago School
Chicago school
Chicago school may refer to:* Chicago school * Chicago school * Chicago school * Chicago school * Chicago school * Chicago School of Professional Psychology...
of economics often claim that business has no other duty than profits to shareholders, and that business therefore has a duty not to pursue environmental and social sustainability except where it increases profits. The extent to which such actions are profitable is much disputed. On the other hand, Friedman actually did not say that the duty to shareholders was absolute: corporations also had a duty to obey the law and compete fairly.
The debate must then turn to the question of what laws may properly be placed on corporate behavior to prevent fraud and other forms of malfeasance, and to ensure open and free competition, with what enforcement mechanisms. Also, whether corporate lobbying for subsidies and other legally-mandated advantages is fair, given that it is economically inefficient and indeed harmful. This question turns in part on the honesty and effectiveness of governments, where results are decidedly mixed. It also turns in part on the honesty and effectiveness of public pressure groups. Results there are also decidedly mixed.
Criticism of sustainable or "green MBAs" has also been heard from environmentalists and social activists. Some complain of corporate greenwashing, that is, of companies pretending to be sustainable or green by hiring graduates of these programs when the companies really are not. Some complain that the programs themselves are not sustainable enough, pointing to weaknesses in their curriculum and core proposition.
Further reading
- Natural Capitalism: Creating the Next Industrial Revolution, by Paul Hawken, Amory Lovins, and Hunter Lovins. ISBN 0-316-35300-0 ISBN-13: 978-0316353007
- The Triple Bottom Line: How Today's Best-Run Companies Are Achieving Economic, Social and Environmental Success -- and How You Can Too, by Andrew W. Savitz and Karl Weber. ISBN 0-787-979074 ISBN-13: 978-0787979072
- Cradle-To-Cradle: Remaking the Way We Make Things, by William McDonough and Michael Braungart. ISBN 0-865-47587-3 ISBN-13: 978-0865475878
- The Sustainable MBA: The Manager's Guide to Green Business, by Giselle Weybrecht. ISBN 0-470-74114-7 ISBN-13: 978-0-470-74114-6